Table 12-17 A Very Simple Economy Produces Three Goods: Movies, Burgers, and \text

question 78

Multiple Choice

Table 12-17
$\begin{array}{|c|c|c|c|c|}\hline & 2013 & & 2018 & \\\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Movies } & 20 & \$ 6.00 & 30 & \$ 7.00 \\\hline \text { Burgers } & 100 & 2.00 & 90 & 2.50 \\\hline \text { Bikes } & 3 & 1,000.00 & 6 & 1,100.00 \\\hline\end{array}$ A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 12-17.What is real GDP in 2018,using 2013 as the base year?

• A) $3,320
• B) $3,690
• C) $6,360
• D) $7,035

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Definitions:

Production Possibilities

A concept in economics that describes the various combinations of goods and services that can be produced in an economy given its available resources and technology.

Joint Consumption

The characteristic of a good or service that can be consumed by more than one person at the same time without reducing its availability to others.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.

Resources

Inputs or factors used in the production of goods and services, including labor, capital, land, and technology.